LSU ECON

The fictitious country Alpha has a population of 30 million people, of which 16 million are counted as workers. The value of Alpha's output in the year 2017 was $180 billion. 1.) The value for Alpha's output per capita in 2017 is $____ 2.) The value for Alpha's average labor productivity in 2017 is $______

1.) 6000 2.) 11250

The fictitious country Alpha has a population of 20 million people, of which 10 million are counted as workers. The value of Alpha's output in the year 2017 was $184 billion. 1.) The value for Alpha's output per capita in 2017 is $_____ 2.) The value for Alpha's average labor productivity in 2017 is $_____

1.) 9200 2.) 18400

Identify for each topic whether it would be studied by a macroeconomist or a microeconomist: 1.) The worldwide operations of General Motors. 2.) The effect of government subsidies on sugar prices. 3.) Factors affecting average wages in the U.S. economy. 4.) Inflation in developing countries. 5.) The effects of tax cuts on consumer spending.

1.) A microeconomist 2.) A microeconomist 3.) A macroeconomist 4.) A macroeconomist 5.) A macroeconomist

Each of the following statements might well have appeared in a newspaper, indicate whether they are positive, normative or both. 1.) Personal income fell in November to a seasonally adjusted rate of $1,879 trillion. 2.) Deregulation of the airline industry has failed. 3.) Limitations on the number of terms a President may serve are a good idea. 4.) Government policies to control inflation has no place in a free market economy such as ours.

1.) Positive Statement 2.) Normative Statement 3.) Normative Statement 4.) Normative Statement

For each of the following statements, indicate whether they are positive, normative or both. 1.) If the Federal Reserve raises interest rates, demand for housing is likely to fall. 2.) The Federal Reserve should raise interest rates to keep inflation at an acceptably low level. 3.) Stock prices are likely to fall over the next year as the economy slows. 4.) A reduction in the capital gains tax (the tax on profits made in the stock market) would lead to a 10 to 20 percent increase in stock prices 5.) Congress should not reduce capital gains taxes without also providing tax breaks for lower-income people.

1.) Positive Statement 2.) Normative Statement 3.) Positive Statement 4.) Positive Statement 5.) Normative Statement

In 2017, the fictitious country, "Alpha" had an unemployment rate of 12.9% and an inflation rate of 6.1%. Which of the following statements correctly describes how the economic situation of Alpha compare with the economic situation in the United States in 2017:

Both the inflation rate and the unemployment rate were lower in the United States in 2017.

What are the implications of these population changes for total output and average living standards in Japan, assuming that average labor productivity stagnates?

Fewer workers and constant labor productivity must diminish total output, but average living standards could still increase or stay constant if there is a smaller population sharing that output.

Over the next 50 years the Japanese population is expected to decline, while the fraction of the population that is retired is expected to increase sharply. What are the implications of these population changes for total output and average living standards in Japan, assuming that average labor productivity continues to grow?

Increased productivity may keep total output from diminishing due to fewer workers, which might lead to an improvement in average living standards.

Consider the table below containing data for two nations, Alfa and Beta, for the years 1997 and 2017. 1997 2017 Avg. labor prod./Output Avg. labor prod./Output Alfa 42770/14114 39773/20661 Beta 27975/13428 44765/21935 a. Which of the following statements are true for nations Alfa and Beta: b. Is it possible for average living standards to rise during a period in which average labor productivity is falling?

Question a. Living standards increased in both nations. Question b. Yes, if the nation experiences increased employment relative to population.

Which of the following statements correctly describes how the economic situation of Alpha in 2017 compare with the economic situation in the United States over the past 50 years:

The U.S. unemployment rate has consistently been lower than 12.9%, but the U.S. inflation rate has been both higher and lower than 6.1%.